The company recently bought a 100% interest in the property from previous owners Canamax Resources (TSE) and Granges Exploration (TSE). The property is reported to host a nickel deposit with several million tons of reserves averaging better than 1% nickel. The deposit is 140 miles south of Thompson and is one mile from a highway.
Canamax’s 75% interest was purchased for $100,000 cash, a promissory note for $150,000 and a net smelter royalty of 1.5%. The remaining 25% interest, held by Granges, was bought for cash and shares totalling $250,000 with no residual royalty.
President Garry Hughes said: “It is Black Hawk’s intention to develop the geological reserves of this deposit from the inferred to the proven and probable categories by additional drilling.”
Initially, the first phase of drilling will test the 1,000-1,200-ft horizon in order to join up previous results obtained by Amax (Canamax was formed by Amax in 1983), Canamax and Granges.
Previous drilling by Amax tested the deposit to depths of around 800 ft, while holes put down by Granges tested the deposit between 1,400 to 1,600 ft depths. About 65% of the mineralization is contained in the main zone, with the balance in several smaller lenses. The strike length of the main zone is about 1,400 ft and the dip is vertical.
The current drilling will also test some of the additional known mineralized structures to the northeast of the main zone.
The company recently raised $250,000 by way of a flow-through financing. Black Hawk’s major shareholder is banker DCC Equities Ltd. which holds about 57% of the company’s 9.8 million shares outstanding.
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